30 April 2014
But if Even basic exemption is not available on winnings income then how 87A can be claimed. Dear Sir basic exemption is not available on winnings income. hence tax should be 92700. and if rebate available then 90640.
30 April 2014
Dear Prashant, 87A is available as long as your total income (which includes lottery income) is not more than Rs 500000/-. availability of 87A comes post computation of tax liability. 115BB is restricted to the computation of tax on total income and 87A applies thereafter.
Therefore, total tax liability shall be Rs 90000. less Rs 2000 rebate under 87A. Net tax liability Rs 88000 plus 3% cess.
30 April 2014
why so? 87A is based on total income. It has nothing to with the tax liability. Had there been the desire of legislature to provide for same logic, it should have worded 87A similar to 115bb...
If a single logic is to be applied to everything in tax, then then there wont be different tax rates, rebates, exemptions, additions etc etc...something similar to Banking transaction tax that BJP wanted to explore as an alternative to Income-tax.
CAclubindia
